# An Introduction to Hedge Funds

**Authors:** Sovan Mitra  
**arXiv:** [0904.2731](https://arxiv.org/abs/0904.2731)  
**Date:** 2009-04-17  
**Summary page:** https://www.summarizepaper.com/en/paper/0904.2731v2/

## Key points

- Comprehensive overview of Hedge Funds and their risk management practices
- Focus on general characteristics of Hedge Funds, investment strategies, and risk models
- Address challenges associated with Hedge Fund modeling
- Survey current Hedge Funds available on the market and those that have been withdrawn
- Summary of supporting and opposing arguments for Hedge Fund usage
- Reliance on academic references for rigorous research and analysis
- Intended audience includes professionals in finance industry, regulators, investors, researchers, and general finance community
- Valuable resource for understanding Hedge Funds and risk management practices

## Summary

This report, titled "An Introduction to Hedge Funds," provides a comprehensive overview of Hedge Funds and their associated risk management practices. It focuses on the general characteristics of Hedge Funds, including their main investment strategies and the risk models they employ. Additionally, it addresses the challenges associated with Hedge Fund modeling and surveys current Hedge Funds available on the market as well as those that have been withdrawn. The paper also presents a summary of both the supporting and opposing arguments for Hedge Fund usage. What sets this paper apart from other freely available literature is its reliance on academic references such as peer-reviewed journals to ensure that the information presented is based on rigorous research and analysis. The paper is intended to be of interest to various professionals in the finance industry such as Hedge Fund and Mutual Fund Managers, Quantitative Analysts, individuals working in "Front" and "Middle" office banking functions (such as Treasury Management), Regulators concerned with Hedge Fund Financial Risk Management, Private and Institutional Investors, Academic Researchers in the field of Financial Risk Management, and members of the general Finance community. Overall, this report serves as a valuable resource for anyone seeking an understanding of Hedge Funds and their associated risk management practices.